Particulars of a company’s inventory are stated. Identify the company’s cash outflow relating to purchases, in each of the following independent scenarios:

(a) Its purchases were £540,200, and its trade payables £118,400 on 31 December 2010 and £286,400 a year later

(b) Its purchases in the year and returns outwards were £712,800 and £35,600 respectively, while trade payables were £392,600 on 1 January 2011 and £388,500 on 31 December 2011

(c) Its sales in the year ended 31 December 2011, made at prices calculated to yield a gross profit ratio of 20%, were £720,000; whilst its trade payables were £294,200 on 31 December 2010 and £282,800 on 31 December 2011

(e) During the year to 31 December 2011 its sales made at cost plus a fifth were £850,200; its carriage inwards £12,400 and its trade payables £324,800 on 31 December 2010 and £298,500 on 31 December 2011

Transcribed Image Text:

As at 1 January 2011 As at 31 December 2011 £218,400 £244,600